What are the best stores for retail arbitrage?
Big-Box and Discount Stores
Walmart, Target, and Dollar Tree are popular because they have frequent clearance sections and low prices. Walmart clearance typically runs 50-75% off, while Target often marks down to 70% off before removing items. Dollar Tree sells everything for $1.25 (as of 2024), which can be profitable if an item sells for $5 or more online.
Warehouse clubs like Costco and Sam's Club offer bulk items that can be split and resold, but membership fees apply. Their clearance deals can be excellent, but inventory varies by location and season.
- Walmart: clearance and rollback items
- Target: end-of-season clearance (often 70% off)
- Dollar Tree: fixed low prices, good for small items
- Costco/Sam's Club: bulk buys, but need membership
Drugstores and Grocery Chains
CVS, Walgreens, and Rite Aid often have clearance on seasonal items, toys, and cosmetics. Grocery chains like Kroger and Publix may have manager's specials on non-food items. These stores can be hit-or-miss, but less competition than Walmart.
Also consider office supply stores (Staples, Office Depot) for clearance on electronics and office goods, and craft stores (Michaels, Joann) for seasonal decor.
- CVS/Walgreens: seasonal and cosmetic clearance
- Kroger/Publix: manager's specials on general merchandise
- Staples/Office Depot: electronics and office clearance
- Michaels/Joann: seasonal and craft clearance
Common mistakes
- Assuming the same store always has the same deals—clearance varies by location and timing.
- Ignoring online arbitrage sources like Amazon and eBay, which can be just as profitable.
- Buying items just because they're on clearance without checking their online resale value and fees.